GACPA 2013.Consolidated

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Updates on Accounting and Auditing Rules and RegulationsLourdes M. CastilloAssistant CommissionerGovernment Accountancy SectorCommission on Audit

GOVERNMENT ASSOCIATION OF CPAs (GACPA)

SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES SEMINAR/WORKSHOPDelivered during the GACPA Seminar atPrince Plaza Hotel, Baguio CityFebruary 6-8, 2013

1COA Circular No. 2012-001 dated June 14, 2012Prescribing the Revised Documentary Requirements for Common Government Transactions2COA Circular No. 2012-004, dated November 28, 2012Demand for the Immediate Liquidation and Settlement of All Cash Advances Outstanding as of December 31, 20113COA Circular No. 2013-002, dated January 30, 2013Adoption of the Revised Chart of Accounts for National Government Agencies4COA Resolution No. 2013-007, dated January 29, 2013Adoption of the Philippine Public Sector Standards of Auditing5Permanent Committee (COA-DBM-DOF) Joint Circular No. 4-2012, dated Sept. 11, 2012Rules and Regulations Implementing Executive Order No. 431 dated August 30, 2005, Directing the Reversion of All Dormant Accounts, Unnecessary Special Trust Funds to the General Fund and For Other Purposes 6National Budget Circular No. 546, dated January 17, 2013Rules and Regulations on the Grant of Representation and Transportation Allowances7Prescribing the Revised Documentary Requirements for Common Government Transactions

COA Circular No. 2012-001, dated June 14, 20128Fundamental Principles PD 1445General Requirements for all Types of DisbursementsSpecific Requirements for Each Type of DisbursementCash AdvancesFund Transfers to NGOs/PosFund Transfers to Implementing Agencies/From Trust Fund to Gen Fund for Unspent BalanceSalaryOUTLINE9OUTLINEAllowances, Honoraria and Other Forms of CompensationsOther ExpendituresExtraordinary and Miscellaneous ExpensesPrisoners Subsistence AllowanceProcurementCultural and Athletic ActivitiesHuman Resource Development and Training ProgramFinancial ExpensesRoad Right-of-Way (ROW)/Real Property10Fundamental Principles, Sec. 4, P.D. 1445No money shall be paid except in pursuance of an appropriation law or other specific statutory authorityUse solely for public purposeTrust funds only for the specific intended purposeFiscal responsibility shared by all those exercising authority over finance, transactions and operationsDisbursements or dispositions should bear approval of proper officialsClaims should be supported with complete documentationFaithful adherence to all pertinent laws and regulationsObservance of GAAP and practices as well as sound management and fiscal administration, provided they do not contravene with existing laws and regulations

11General Requirements for All Types of DisbursementsCertification of Availability of Fund by Chief AccountantLawful and sufficient allotment duly obligated as certified, except for GOCCs and GFIsLegality of transaction and conformity with laws, rules and regulationsApproval of expenditure by Head of Office or authorized representativeSufficient and relevant documents to establish validity of claim121.0 Cash AdvancesGeneral Guidelines COA Circs. 97-002, 2009-002, Sec. 89 of PD 1445, pertinent GAA provisionsSpecific Guidelines and Documents RequiredTypes of Cash Advances (Payroll Fund, PCF, Field/Activity COE, TA (local and foreign)Granting of Cash AdvanceGeneral GuidelinesDocuments Required Common to All CAs except for travelAdditional Documents per type of Cash AdvanceLiquidation of Cash Advances132.0 Fund Transfers to NGOs/POsGeneral Guidelines pertinent provision of the GAA for the year, Sec. 4.5.6 COA Circular 2007-001 and GPPB Res. 12-2007

Specific Guidelines and Documentary Requirements Release of FundsImplementation and Liquidation of Funds ReleasedStaggered Release of Funds to NGO/PO143.0 Fund TransfersGeneral Guidelines COA Cirular 94-013, COA Memo 2010-014Specific Guidelines and Documents RequiredTransfer to Implementing AgenciesTransferImplementation and Liquidation by Implementing AgencyLiquidation by Source AgencyFrom Trust Fund to General Fund for Unspent/Excess Amount

154.0 SalaryGeneral Guidelines- 35 FY2012 GAA or pertinent provision of the GAA for the year, RA 6758 as amended (Pres. Veto message, 020810,p. 1236, RA 9970) Specific Guidelines and Documents Required -Sec.325, RA 7160 LGU Code, EO 292, CSC MC 14 s. 1999, CSC Res. 02-1490, COA Cir 2000-006, DBM Local Budget Circular 2009-91, DBM National Compensation Circular 67, s. 1992, CSC Circular 06, s.2005, etc.Individual ClaimsFirst SalarySalary (if deleted from the payroll)Salary of Casual/Contractual PersonnelSalary Differential due to Promotion and/or Step IncrementLast SalarySalary due to heirs of deceased employeeMaternity LeaveGeneral Claims through the ATM

165.0 Allowances, Honoraria and other Forms of CompensationGeneral GuidelinesSpecific Guidelines and Documents RequiredPersonnel Economic Relief AllowanceRepresentation and Transportation Allowance (for individual and general claims)Clothing/Uniform Allowance (Individual and General claimsSubsistence, Laundry and Quarters AllowancesProductivity Incentive Allowance (individual and general claims)Special Counsel AllowanceHonorariaPersonnel Involved in Government ProcurementTeaching Personnel (DepED, TESDA, SUCs and other educational institutions)Governing Boards of Collegial BodiesLecturer/CoordinatorSpecial ProjectsScience and Technological Activities

17Other ExpendituresGeneral Guidelines Sec. 57, 2012 GAA or pertinent provision of the GAA for the year, Sec 43, Chapter 5 and 80, Chapter7, Book V1 EO 292, Sec 58, 2012 GAA, etc.

Specific Guidelines and Documents RequiredUtility ExpenseTelephone/Communication Services

18Extraordinary and Miscellaneous ExpensesGeneral Guidelines Sec. 57, 2012 GAA or pertinent provision of the GAA for the year, Sec 43, Chapter 5 and 80, Chapter7, Book V1 EO 292, Sec 58, 2012 GAA, etc.

Specific Guidelines and Documents RequiredUtility ExpenseTelephone/Communication Services

19Prisoners Subsistence AllowanceGeneral Guidelines Item 1 and 2, Special Provision for BJMP and Bu Cor, 2012 GAA or pertinent provisions for the yearSpecific Guidelines and Documents RequiredBy administration thru cash advanceBy catering contract20ProcurementGeneral Guidelines ( RA 9184, Sec 85 2012 GAA or pertinent provisions of GAA for the year), Sec 85 2012 GAA or pertinent GAA provision for the year, Sec. 7 IRR of RA 9184, Sec 7, RA 9184, Rule XVI Revised IRR RA 1984, Sec. 13.1, RA 1984; Specific Guidelin, es and Documents RequiredProcurement thru Public Bidding GAA for the year, Sec. 2-7, 9-10 and 12 of EO 182 s. 1997 and Sec. 87 of GAA 2012, COA Circular 2009-001, 2005-0087InfrastructureAdvance PaymentVariation Order/Change Order/Extra Work OrderProgress PaymentFinal PaymentRelease of Retention MoneyConsulting Services Annex E Revised IRR RA 9184, Annex D. COA Memo 2005-027Goods- RA 9184, Sec 5r Revised IRR, 2012 GAA Provisions, Sec. 20Supplies, Materials, Equipment and Motor VehiclesGeneral Support Services (janitorial, security, maintenance, garbage collection and disposal and similar services)Rental ContractsRepair and Maintenance of Aircraft, Equipment and Motor VehiclesAdvertising ExpensesProcurement thru Alternative Modes COA Cir. 2009-001, RA 9184 pertinent provisionsRequirements Common to all alternative modesSpecific requirementsLimited Source BiddingDirect ContractingRepeat OrderShoppingNegotiated ProcurementProcurement thru Automatic Debit Arrangement or direct payment

21Cultural and Athletic ActivitiesGeneral Guidelines Sec 25 of GAA 2012 or pertinent provision of GAA for the yearDocuments RequiredBudget estimates approved by the Head of AgencySame requirements under procurement depending on the nature of expense and the mode of procurement adopted22Human Resource Development and Training ProgramGeneral Guidelines CSC Guidelines Sec. 27 2012 GAA and pertinent provisions of the GAA for the year

Documents RequiredBudget estimates approved by the Head of AgencySchedule of the training approved by the Head of the AgencySame requirements under procurement depending on the nature of expense and the mode of procurement adopted23Financial ExpensesGeneral Guideline appropriate provision of the New Government Accounting System and other pertinent laws, rules and regulations

Documents RequiredLoan Agreements/Memoranda of Agreement together with supporting documentsStatement of AccountsBank Debit MemosOthers necessary depending on the nature of the transactions

24Road Right-of-Way/Real PropertyGeneral Guidelines RA 8974 and its IRRDocuments RequiredLand Sec.8 RA 8974 on Environment Clearance CertificateNegotiated PurchaseIf Registered landIf Unregistered land EO 1035 on Claimants Surety/Indemnity BondFor Payment by Court DecisionStructure/HouseImprovements (trees, plants, growing fruits, etc.) DENR rules and regulations25COA Circular No. 2012-004, dated November 28, 2012Demand for the Immediate Liquidation and Settlement of All Cash Advances Outstanding as of December 31, 2011

26All Heads of National Government Departments, Bureaus and Agencies;Provincial Governors, City/Municipal Mayors;Managing Heads of Government-owned and/or Controlled Corporations;All Treasurers, Finance Officers, Regular and Special Disbursing Officers, and Other Accountable Officials of the aforesaid Government Agencies;COA Directors, Regional Directors, and Heads of Auditing Units, and All Others ConcernedAddressed to the following:27RationaleAs a general rule, cash advances must be liquidated within the prescribed periods depending on the nature and purpose of the cash advance:Salaries and wagesPetty and field operating expensesLocal travel and foreign travelHonoraria and similar payments to officials and employeesExpenses for special projects/activities such as anniversary celebrationCultural and athletic activitiesThe above cash advances must be liquidated within twenty (20) days from the accomplishment of the purpose.28Settlement and Liquidation of Cash AdvanceA cash advance is settled and liquidated either by:Returning the money advanced if unspent,Or by the presentation of regularly accomplished vouchers, giving satisfactorily detail of the items thereon paid which must be in accordance with the purpose for which the cash advance was granted, and further supported by proper receipts and other evidence of payment, subject to the result of the post-audit thereof by the auditor concerned.29Primary responsibility of Heads of AgenciesSection 2 of Presidential Decree (P.D.) No. 1445, the Government Accounting Code of the Philippines, places the responsibility to faithfully take care that government funds and property be safeguarded from wastage directly with and primarily on the chief or head of the government agency concerned30Legal presumption against non-liquidation of cash advanceArticle 217 of the Revised Penal Code states in unequivocal terms that:The failure of a public officer to have duly forthcoming any public funds or property with which he is chargeable, upon demand by any duly authorized officer, shall be prima facie evidence that he has put such missing funds or property to personal use.31Final demand to settle unliquidated cash advanceFinal notice and demand is hereby made to all concerned to settle and liquidate all outstanding cash advances as of December 31, 2011, on or before January 31, 2013. Provided, however, that those who have been issued by the Commission on Audit notice and demand, prior to the issuance of this Circular, to settle and liquidate their cash advances within a specified period, shall do so within the period specified in the said notice.32An accountable officer refers to:A public officer or employee who, in the discharge of his office, receives money from the government which he is bound to later account for. Transfer, separation or retirement from the government does not operate to discharge the said person from coverage of the definition and corresponding duty to account for the unliquidated advances.33This Circular shall serve as the demand required under appropriate law, rules and regulations to settle the accountable officers unliquidated cash advance as well as all those who are already separated from the service or have transferred to other agency.34Duties of Agency officials:On or before December 15, 2012, all heads of government agencies shall disseminate in writing this Circular to all Accountable officials and employees within their respective agencies and serve a written notice to and demand settlement of the outstanding cash advances as of December 31, 2011.The Chief Accountant shall, within the same period, furnish the head of agency and the head of the auditing unit thereat a list of accountable officers with unliquidated and outstanding cash advances.35Duties of the Commission on Audit:Ensure that the outstanding cash advances are liquidated within the specified periodsShall Evaluate the cash advances of Accountable Officers to determine compliance with pertinent COA Rules and Regulations and to report violations thereofShall report on or before February 28, 2013 to the agency head and to the Director, FAIO, compliance with this Circular including the ageing of the cash advances showing the purpose and other informationSubmit to the respective COA Directors the vouchers and all supporting documents relative to the grant of the cash advance, copy furnished the COA Chairperson36Consequences of failure to liquidateFailure of an accountable officer to liquidate his outstanding cash advance on or before January 31, 2013 shall constitute cause for the filing of malversation charge under Article 217, failure to liquidate cash advance under Article 218, both of the Revised Penal Code or criminal prosecution under Section 128 of P.D. 1445.The suspension of salaries of the accountable officers shall be ordered by the auditor concerned to the propers agency official through the head of the Agency.Appropriate administrative proceedings shall likewise be instituted.37COA Revised Chart of Accounts for National AgenciesLegal Basis:COA Circular No. 2013-002 Dated January 30, 2013January 01, 2014Effectivity:

38Objectives:To provide new accounts for the adoption of the Philippine Public Sector Accounting Standards (harmonized with IPSAS)

To provide uniform accounts for national government accounting and budget systems to facilitate the preparation of harmonized financial and budgetary accountability reports

To expand the account code from three (3) digits in the NGAS Chart of Accounts to eight (8) digits, to allow expansion or creation of new accounts as may be necessary to implement new standards or policies.

39The COA Revised Chart of Accounts is integrated in the Unified Account Code Structure (UACS) under the Philippine Public Financial Management (PFM) Reform Program jointly undertaken by DBM, DOF and COA. 40Major ChangesCoverage is limited only to all national government agencies

Expanded account code structure - from three (3) digits to eight (8) digits

41Account Code Structure

42Account Groups:Codes are assigned to account groups to facilitate location of accounts in the general and subsidiary ledgers, to provide systematic arrangement and classification of accounts and facilitate preparation of the consolidated financial reports as follows:

CodeAccount Groups 1 Assets 2 Liabilities 3 Equity 4 Income 5 Expenses

43Asset Without Contra Account

Ex. Cash, Collecting Officer44Asset Without Contra AccountEx. Accounts Receivable

45Major ChangesNew Accounts were provided for the implementation of the Philippine Public Sector Accounting Standards

46New AccountsExample

47Major ChangesSome accounts were deleted since these accounts are for use by local government units or government-owned and/or controlled corporations while other accounts are no longer applicable to national government agencies.

48Deleted AccountsExample

49Major ChangesSome accounts were either expanded or compressed. For instance, expense accounts for repairs and maintenance and depreciation of property, plant and equipment which were previously presented per asset account were compressed based on the major account classification.50Compressed AccountsExample

51Expanded Account

Example

52UNIFIED ACCOUNTS CODE STRUCTURE (UACS)

FUNDING SOURCE6 DigitsORGANIZATION12 digitsLOCATION9 digitsMFO/ PROGRAM, ACTIVITY and PROJECT9 digitsOBJECT CODE10 digitsFinancing Source1 digitAuthorization2 digitsFund Category3 digitsDepartment2 digitsAgency3 digitsOperating Unit 7 digitsRegion 2 digitsProvince2 digitsCity, Municipality2 digitsBarangay3 digitsMFO/PAP Code9 digits COA CoA* Object 8 digits Sub-Object 2 digitsRequiredRequiredRequiredRequiredRequired OptionalOptionalUnique for each Department/AgencyUniform across Government* Chart of AccountsDRAFT53The Unified Account Code Structure (UACS)Jointly developed by DBM, DOF and COA

It is a government-wide coding framework to provide a harmonized budgetary and accounting code classification that will facilitate reporting of actual revenues and collections and expenditures compared with programmed revenues and expenditures, starting fiscal year 2014 54The UACS is to be adopted in identifying, aggregating, budgeting, accounting, auditing and reporting the financial transactions of the government.

Enhance the quality and timeliness of financial data for the generation of the required reports and analysis of the same.

Strengthen financial controls and accountability. 55Key Elements of the UACSFunding Source Codes: Six (6) digit code to reflect the Financing Source, Authorization and Funding Category

Organization Codes: Twelve (12) digit code to reflect the Department, Agency and Sub-Agency or Operating Unit/Revenue Collecting Unit56Location Codes: Nine (9) digit code to reflect the Region/Province/Municipality/Barangay following the Philippine Standard Geographic Code prescribed by the National Statistical Coordination Board

Major Final Output (MFO)/Program, Activity and Project (PAP) codes: Nine (9) digit code to reflect the MFO/PAP codes

Object codes: Assets, Liabilities, Equity, Revenues, and Expenses following the COA Chart of Accounts by object and sub-objects provided by BTr, BIR, DOF, BOC and DBM57Executive Order No. 55 dated September 6, 2011

(Subject of COA Memorandum 2011-020 dated September 6, 2011)


SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES SEMINAR/WORKSHOP

Directing the Integration and Automation of Government Financial Management System58RationaleIt is the policy of the State to adopt and implement full public disclosure of all its transactions involving public interest and recognize the right of the people to information on matter of public concern as embodied under Section 28, Article II and Section 7, Article III of the 1987 Constitution59The present administration subscribes to emerging global thrust towards open government and greater budget transparency and accords the highest priority to public sector initiatives that promote transparency, accountability and good governance as contained in the Presidents Social Contract with the Filipino people.60Objectives of Government Integrated Financial Information System (GIFMIS)To facilitate the generation of vital information on any and all aspects of government financial transactions that can be made accessible to the public through I.T., subject to existing laws,

Greater participation of civil society organization in fiscal governance,

Effective and efficient delivery of public services.61Allow greater financial management and control at oversight and agency levels,

Ensure stricter compliance of the budget to appropriation laws and corresponding rules and regulations,

Significantly improve Treasury cash management, and

Facilitate keeping of general accounts of government and management reporting at various levels of government62The following agencies of the government signed a Memorandum of Agreement (MOA):Commission on Audit (COA),

Department of Budget and Management (DBM),

Bureau of Treasury (BTr)/Department of Finance (DOF) which created the Steering Committee on Cooperation to Foster the Development of a GIFMIs and implement a Public Financial Management (PFM) Reforms Roadmap and operationalize a Treasury Single Account (TSA)63Philippine Public Financial ManagementAccounting and Auditing Reforms (AAR) PIU Philippine Public Financial Management Status Report

64Philippine Public Financial ManagementKEY ACCOMPLISHMENTSPriority Area #1 - ACCOUNTINGHarmonize PGAS with IFRS and IPSAS23 Philippine Public Sector Accounting Standards (PPSAS) which are intended for implementation in 2013 are being exposed to various COA sectors and concerned organizations like PICPA, GACPA, AGAP, PAGBA, EUC and PHALGAOn-going evaluation of eight comments received from agencies/organizationsFive of the 23 PPSASs, PPSAS 5, 13, 17, 29 and 31 were revised as result of the issuance of the 2012 IPSAS Handbook which contains the newly-issued IPSAS 32, Service Concession Arrangements: Grantor dated October 201165Priority Area #2 - AUDITINGDevelop Philippine Public Sector Standards on Auditing (PPSSA) COA resolutions to adopt/implement the following were signed by the COA Commission Proper (CP):COAs Framework of Professional Standards11 PPSSAs are being finalized and for submission to the CP for approval24 PPSSAs18 ISAs/ISSAIs are on-going evaluation for adoption as PPSSAs66National Budget Circular No. 546 dated January 17, 2013


SUSTAINING ETHICS AND EXCELLENCEIN MANAGING GOVERNMENT RESOURCES SEMINAR/WORKSHOP

Rules and Regulations on the Grant of Representation and Transportation Allowances67Salient FeaturesPurpose:Issued to prescribe rationalized and updated rules and regulations on the grant of Representation Allowance (RA) and Transportation Allowances (TA)Coverage:Generally, those holding regular and contractual positions entitled to RATA under the pertinent general provisions of the annual GAA

Others as authorized and enumerated in the NBC68Authorized Monthly RATA Rates:Highest rate is P14, 000.00 for RA and P14,000.00 for TA

Lowest rate is P5,000.00 for RA and P5,000.00 for TA

Officials who are assigned or who use government vehicles are not entitled to TA

The grant of RATA shall be based on the actual work performance in a month on a pro-rata basis, exclusive of leaves of absence with pay as follows:No. of Workdays of Actual Work PerformanceActual RATA for a Month1 to 6 workdays25% of the monthly RATA7 to 12 workdays50% of the monthly RATA13 to 18 workdays75% of the monthly RATA19 workdays or more100% of the monthly RATA69For the issued government vehicle, but in some eventful cases were prevented to use it such as when the vehicle undergoes repair and no replacement is provided, the grant of TA maybe allowed on pro-rata bases.

RATA for OICs of positions entitled to those allowances maybe allowed but not to OICs of positions internally created organizational units whose staffing are not authorized by DBM

Monthly RATA while on concurrent capacity

Monthly RATA while on full-time detail or reassignment

Monthly RATA while on scholarship/study/training grant70Fund Sources:Charged against the agency budgets/appropriations for the purpose for NGAs

For GOCCs and GFIs, charged against the corporate operating budgets

The reimbursible RATA for those in detail to other government agencies shall be charged against the budgets of the parent agenciesEffectivity:January 01, 201371Thank you!

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